Tamilnad Mercantile Bank Ltd Management Discussions

(a) Industry structure and developments.

Global Economy

Steady global growth and varied regional dynamics:

Globally, 2024 has been an eventful year. The year witnessed unprecedented electoral activity on the political front, with more than half of the global population voting in major elections across countries. Meanwhile, adverse developments like the Russia-Ukraine conflict and the Israel-Hamas conflict increased regional instability. These events impacted energy and food security, leading to higher prices and rising inflation. Cyber-attacks also became more frequent and severe, with growing human and financial consequences due to the increasing digitisation of critical infrastructure. Geopolitical tensions, have reshaped global trade. Geopolitical risks and policy uncertainty, especially around trade policies, have also contributed to increased volatility in global financial markets.

The global economic growth moderated to 3.3 percent in 2024 (3.5 percent in 2023) and it is expected to be even lower in 2025 (2.8 percent). Over the next five years, global growth is expected to average around 3.2 per cent, which is modest by historical standards. While the overall global outlook remains steady, growth varies across different regions.

State of the Economy

Domestic Economy

Domestic economy remains steady amidst Global uncertainties

As per the first advance estimates released by the National Statistical Office, Ministry of Statistics & Programme Implementation (MoSPI), the real Gross Domestic Product (GDP) growth for FY25 is estimated to be 6.4 per cent. From the angle of aggregate demand in the economy, Private Final Consumption Expenditure at constant prices is estimated to grow by 7.3 per cent, driven by a rebound in rural demand. PFCE as a share of GDP (at current prices) is estimated to increase from 60.3 per cent in FY24 to 61.8 per cent in FY25. This share is the highest since FY03. Gross Fixed Capital Formation (GFCF) (at constant prices) is estimated to grow by 6.4 per cent.

On the supply side, real Gross Value Added (GVA) is also estimated to grow by 6.4 per cent. The agriculture sector is expected to rebound to a growth of 3.8 per cent in FY25. The industrial sector is estimated to grow by 6.2 per cent in FY25. Strong growth rates in construction activities and electricity, gas, water supply and other utility services are expected to support industrial expansion. Growth in the services sector is expected to remain robust at 7.2 per cent, driven by healthy activity in financial, real estate, professional services, public administration, defence, and other services.

(b) Banking Sector: i) Deposits & Credit growth:

All Scheduled Commercial Banks (ASCB):

During the Financial Year 2024-25, ASCB

Deposits grew by 21.50 lacs crore, with a Y-o-Y growth of 10.43% and credit grew by 17.93 lacs crore, Y-o-Y growth of 10.99% which has pushed the incremental CD Ratio to 83.40%.

TMB:

During the Financial Year 2024-25, we registered a growth in Deposits by 4,174 crore, with a Y-o-Y growth of 8.43%. Loans and

Advances grew by 4,395 crore, a Y-o-Y growth of 11.00% which has pushed the incremental CD Ratio to 105.29%. ii) Lending Rate Movements:

The weighted average lending rate (WALR) on fresh Rupee loans of ASCBs stood at 9.35 percent in March 2025 (9.37 percent in March 2024).

The WALR on outstanding Rupee loans of ASCBs declined to 9.77 percent in March 2025 from 9.85 percent in March 2024).

1-Year median Marginal Cost of fund-based Lending Rate (MCLR) of SCBs increased to 9.00 percent in March 2025 from 8.80 percent in March 2024. iii) Deposit Rate Movements:

The weighted average domestic Term Deposit rate (WADTDR) on fresh rupee term deposits of SCBs stood at 6.65 percent in March 2025 as compared to 6.62 percent in March 2024.

The weighted average Domestic Term Deposit rate (WADTDR) on outstanding rupee term deposits of SCBs stood at 7.03 percent in March 2025 (6.88 percent in March 2024).

Performance highlights of the Bank

Total Deposit portfolio of the Bank crossed

50,000 crores.

Opened26newbranchesduringtheFY2025.

Total Business increased to 98,055 crore from 89,485 crore Y-o-Y.

Gross Advances increased to 44,366 crore from 39,970 crore Y-o-Y.

Book value of share increased to 569 from 500 Y-o-Y.

Net profit surged to 1,183 crore from 1,072 crore Y-o-Y.

Interest Income improved to 5,291 crore from 4,848 crore Y-o-Y.

Total Income moved to 6,142 crore from 5,493 crore Y-o-Y.

The RAM (Retail, Agri & MSME advances) segment increased to 93% from 91% Y-o-Y.

The CRAR% increased to 32.71% from 29.37% Y-o-Y.

Total SMA to Gross Advances declined to 2.55% from 3.97% Y-o-Y.

Stressed Assets ratio decreased to 2.01% from 2.70% Y-o-Y.

The Banks Net worth increased to 9,009 crores (PY 7,921 crores) with an absolute rise of 1088 crores registering a growth rate of 13.74%.

(c) Segment–wise / product-wise performance: Advances

			Y-o-Y Growth
Particulars	MAR24	MAR25	(MAR25 over
			MAR24)
Gross Advances	39,970	44,366	11.00%
Of which
Retail Sector	8,478	9,186	8.35%
Agriculture Sector	14,420	18,591	28.93%
MSME Sector	13,586	13,520	-0.49%
Total of RAM	36,484	41,297	13.19%
RAM % to Gross Advances	91%	93%	200 bps
Others	3,486	3,069	-11.96%
CD Ratio (%)	80.72%	82.64%	192 bps

Banks Retail and Agriculture sectors have grown by 8.35% and 28.93% respectively on a Y-o-Y basis.

The Bank has achieved the highest ever Net Profit, Operating profit, Interest Income & Total Income in the history of the Bank.

(d) SWOT Analysis

Strengths

Strong capital base comprising mainly of Tier I Capital.

Over 103 years in the Banking Industry with an impeccable track record.

A dedicated and proficient workforce.

Consistent dividend payment record.

A rich heritage, a dedicated customer base, and a commitment to enhancing our service framework.

Known for prioritizing customer service above all everything bank.

A large bouquet of products both in liabilities and assets.

Strong market share in southern Tamilnadu districts (Thoothukudi, Virudhunagar, Kanyakumari, Madurai & Tenkasi).

Consistent financial performance.

Diversified Loan Portfolio

High Customer Retention

Weakness

Branch network predominantly in Tamilnadu.

Limited presence in Metro or Urban centers outside Tamilnadu

Relatively low digital presence.

Banking technology is not at par compared to leading competitors.

Opportunities

Indias GDP is projected to increase by 6.4% in the 2025-26.

Formation of CMC to handle entire life cycle of advance other than jewel loans making the branch liability focused and to grow rapidly in Advances.

Opportunities for expansion in the digital domain through the introduction of lending services on Internet and Mobile platforms.

Enhancing the CASA portfolio to improve Net Interest Margin (NIM).

Establishing branches in various locations outside Tamilnadu to expand our footprint and enhance business opportunities.

Developing and offering innovative financial products and services to meet evolving customer needs and preferences.

Adapting to regulatory changes and leveraging them to improve operational efficiency and compliance.

Focusing on improving customer service and experience to retain existing customers and attract new customers.

Partnerships with Fintech Platforms.

Expansion into Rural Areas

Threats

Competitive Interest rate strategies among banks targeting a finite pool of low-risk borrowers.

Customers are increasingly prioritizing investments in the equity market over traditional products such as savings and term deposits.

Intense competition from new-generation banks and peer banks.

An increasing incidence of technology related frauds, including cyber frauds, is being observed.

Continued Geopolitical tensions

(e) Outlook

Highlights of the Union Budget FY2025-26

	The budget emphasizes 10 broad areas: Garib (Poor), Youth, Annadata (Farmers), and Nari (Women), powered by four key growth engines: Agriculture, MSMEs, Investment, and Exports.
Focus area	Sectoral reforms across taxation, power, urban development, mining, financial sector, and regulatory improvements.
	Nominal GDP Growth: Estimated at 10.1% for FY26.
	Fiscal Deficit: Pegged at 4.4% of GDP (H 15.68 lakh crore), lower than 4.8% in FY25.
	Market Borrowings: Gross at J 14.8 lakh crore, net at J 11.5 lakh crore.
Macro economic indicators

 

	PM Dhan-Dhaanya Krishi Yojana: Targeting 1.7 crore farmers in 100 low-productivity districts.
Rural & Agricultural initiatives	Multi-sectoral Rural Prosperity & Resilience Programme to improve skilling, investment, and technology adoption in rural areas.
	Higher Kisan Credit Card (KCC) interest subvention to boost credit flow to farmers.
	Mission for Aatmanirbharta in Pulses to enhance domestic production of pulses (Tur, Urad, Masoor).
	‘Grameen Credit Score framework for Self-Help Groups (SHGs) and rural borrowers to improve credit access.
	Partial Credit Enhancement Facility under NaBFID for corporate bonds financing infrastructure.

 

Banking & Financial sector reforms
	Bharat Trade Net (BTN): A unified platform for trade finance and documentation.
	Expansion of IFSC tax exemptions extended until March 31, 2030.
	Investment & turnover limits for MSMEs increased by 2.5x and 2x, respectively.
	Customized Credit Cards (H 5 lakh limit) for MSMEs registered on the Udyam portal.
MSME Growth	New Fund of Funds (H 10,000 crore) for MSME financing.
	Credit scheme for first-time entrepreneurs (H 2 crore loans for SC/ST & women entrepreneurs).
	11.2 lakh crore allocated for capital expenditure (3.1% of GDP).
	1.5 lakh crore in 50-year interest-free loans to states for capital investment.
Infrastructure development	Urban Challenge Fund of H 1 lakh crore for redevelopment of cities, water & sanitation.
	No income tax for earnings up to H 12 lakh under the new tax regime.
	Standard deduction of H 75,000 for salaried taxpayers.
	Higher TDS exemption limits:
Personal Income tax & reforms	Senior citizens interest deduction limit raised from H 50,000 to H 1 lakh. TDS on rent increased from Rs. 2.4 lakh to Rs. 6 lakh.

Budget Impact on (CASA)

Higher disposable income:

Increase in personal income tax exemption

(H 12 lakh limit) leaves higher disposable income with individuals and likely to increase savings in banks.

Higher rural credit flow (KCC, MSME credit cards) will improve transaction-based CASA growth in rural and semi-urban areas.

Digital & Credit Inclusion:

Bharat Trade Net (BTN) for trade finance will facilitate cross-border banking transactions, enhancing CASA balances for banks involved in trade finance.

New MSME credit schemes (credit cards, term loans) will boost digital banking adoption, increasing low-cost CASA deposits.

Budget Impact on (Deposits)

Highet Tax free income Higher Bank Deposits:

Senior citizens interest deduction limit doubled

(H 50K H 1 lakh) which will encourage fixed deposits and recurring deposits.

Reduced personal income tax for the middle class (H 7L-12L bracket) will increase savings in Banks, benefiting fixed deposits (FDs).

Government Capex & Fiscal stability Safe haven appeal:

Fiscal consolidation (lower deficit at 4.4%) & stable borrowing plans improve investor confidence in banking deposits.

Higher government borrowing (H 14.8 lakh crore) could boost G-Sec-linked deposit instruments like sovereign bonds, term deposits in PSU banks.

Challenges:

Increased competition from mutual funds and other investment instruments due to higher disposable income and market growth.

Low deposit rates due to stable inflation and liquidity might reduce attractiveness of Fixed Deposits (FDs).

Budget Impact on (Advances)

MSME & Rural Credit Expansion Higher loan demand:

Credit guarantee expansion for MSMEs and H 5 lakh MSME credit cards will increase loan disbursement to small businesses.

Grameen Credit Score for SHGs & rural borrowers will improve credit underwriting, boosting rural advances growth.

Higher KCC loan limits and interest subvention for farmers will increase agricultural credit demand.

Infrastructure lending boom More corporate loans:

H 11.20 lakh crore capex allocation will increase demand for infrastructure loans, benefiting PSU banks & NBFCs.

Asset Monetization Plan (H 10 lakh crore) will support bank lending to PPP projects & corporate debt financing.

Challenges:

Risk of higher NPAs in MSME lending due to high default risks in unsecured credit.

Corporate lending still dependent on global economic conditions, which may impact credit growth in large-scale projects.

In the backdrop of the above macroeconomic scenario, your bank would be adopting the following strategies to grow its business

1. Leveraging the Transaction Banking Group (TBG), Global NRI Centre (GNC) and Elite Service Group (ESG) for rapid growth in Deposits.

2. Launch of CMC at all RH centers to handle entire life cycle of advance other than jewel loans making the branch liability focused and to grow rapidly in Advances.

3. Thrust for value-based CASA NCA accounts through marketing team. Thrust will be given for opening more number of Royal and Premium accounts under Savings Bank schemes, Flexi Current Account, TASC and GBG accounts.

4. Expanding services to underserved and Rural areas to increase the customer base and promote inclusive growth.

5. Implementing targeted marketing strategies and loyalty programs to attract new customers and retain existing customers.

6. Collaboration with third party products partners to deepen customer engagement.

The above strategies would be adopted on the back of robust technology platforms, which would be functional in the FY 25-26. Prominent among them include:

(a) A comprehensive LOS/LMS platform to take care of the entire credit life cycle of customers with a robust BRE built therein with state-of-the-art CX/CRM features.

(b) A thoroughly revamped New Internet Banking Platform, DEH by Edgeverve (Infosys).

(c) Leveraging CBDT and GST Payment Facility through our Bank network.

(d) A state-of-the-art Vendor Management System for Single Expense Management System across the bank, that will manage all payments other than HR related expenses.

(f) Risks and concerns.

The Risk Management philosophy of your Bank is to accept risk as an essential aspect of business and take necessary steps to manage and mitigate the risk. Your Bank seeks to build business which expands but always within the overview of the risk management principles. As with all banks in the banking system, your Bank is exposed to various risks that are inherent to any banking business. The major risks are credit risk, market risk including interest rate risk and liquidity risk, Operational risk, Reputational and strategic risks. Your Bank has put in place a very responsive risk management framework. The Bank has robust risk management policies, well laid out procedures, processes and methodologies to manage the risks envisaged.

The overall responsibility for establishing a strong risk management framework lies with the Board of Directors. The Risk Management Committee of the Board (RMCB) oversees the implementation of various measures for efficient risk management with the support of the Executive Level Committees.

Risk Management Department is headed by the Chief Risk Officer, who is responsible for the risk management functions of your Bank. An independent risk governance structure has been put in place, duly ensuring independence of risk measurement, monitoring and control functions. The bank has a well-articulated risk appetite statement and activities of the bank are structured to fall in line with the risk appetite, which is defined.

Your Bank has an internal rating mechanism, which forms the basis for risk linked pricing framework. The bank also has a scoring structure for the retail loans. The loan policy of the Bank ensures that the underwriting standards are maintained, online and offline monitoring methods are devised to strengthen supervision of credit and whenever weaknesses are perceived, risk mitigation measures are implemented. The Bank has also EWS system, which is an automated environment for early detection of frauds.

The Bank has exposures in RAM segment i.e. Retail, Agriculture and MSME. The bank has been traditionally strong in these areas and proposes to build on the expertise it has gained over the years for further growth in these segments. Retail has a specific focus of home loans and the Bank intends to increase the exposure in this portfolio. The risk management structure for identifying, measuring, monitoring, controlling and mitigating the risks for these portfolios are well entrenched.

With regard to industry exposure, in addition to good underwriting skills strengthened by established appraisal norms, there are also mechanism of capping various exposures on the basis of the borrower group, industry, credit rating grades and geography, amongst others. Further major sectors are also monitored by having caps in place. Concentration risk is tracked by putting proper limits.

Credit risk management is practiced in your Bank, through its various policies, risk assessing tools and risk mitigating measures, which forms the base for good credit growth coupled with better asset quality.

Your Bank has put in place proper framework for market risk management. The Bank has a conservative approach to investment and mainly invests in Government securities. In case of investing in bonds of corporate entities, the Bank ensures that the external rating of the entities is investment grade only.

The forex activities are mainly trade finance oriented, purchasing, discounting and negotiating bills drawn on various currencies on account of our customers. The Bank has put in limits with regard to its foreign currency position like Net Overnight Open position, Currency wise aggregate gap limits etc., so that the fluctuations of foreign currencies does not lead to any substantial loss to the Bank. Counterparty limits for exposures with banks are also in place to ensure that the Bank not enter into any high exposures with banks.

The Bank also understands that the Operational risk is one the major risks faced by banks and there is a need to have bank wide structure in place to identify, monitor and mitigate this risk. The Bank conducts Risk and control Self-assessment (RCSA) on its products and processes to understand the control deficiencies, if any, and take steps to address the same. Further, the Bank is laying great emphasis on training and educating its staff on all banking matters especially in various types of products and processes so that errors can be minimized. System based checks are also in place to ensure that the mistakes can be prevented. Your bank is taking all the steps necessary to ensure that the impact of operational risk is reduced.

(g) Internal control systems and their adequacy.

INSPECTION AND AUDIT

Inspection and Audit independently evaluates the adequacy, completeness, operational effectiveness and efficiency of all internal controls, risk management/governance systems and processes of the Bank. The Audit Committee of the Board provides direction and reviews the adequacy of internal audit function, including its reporting structure, staffing, coverage and frequency of audits. The Head of Inspection Department reports to ACB with dotted line reporting to the ED. An executive level committee named the "Audit Committee of Executives" headed by the Managing Director & CEO oversees the audit and inspection functions and reviews the audit procedures and methodologies, effectiveness of audit systems, progress in completion of audits, risk rating of branches, and significant audit findings. The Risk Based Internal Audit Policy, Credit Audit Policy, Management Audit Policy, Concurrent Audit Policy and Information System Audit Policy which serve as the basic guidance documents for internal Audit function, were subjected to annual review during the year. The review covered appropriate modifications and refinements based on regulatory guidelines, changes in internal rules and guidelines, directions of the Audit Committee of the Board and the Board of Directors. The review and modifications ensured that the audit systems and procedures are contemporary and continue to be an effective tool for monitoring control and compliance in the Bank. Inspection & Audit is responsible for self-assessment of the Banks internal financial controls by testing and validating the effectiveness of controls on an ongoing basis. The major audits undertaken by the Bank during the financial year are:

Risk Based Internal Audit

Your Bank has leveraged on Risk Based Internal Audit (RBIA) as a tool to assess the risks in its processes, operations and effectiveness of related controls. Risk Based Internal Audit conducted at branches focus on evaluating the branches based on the level of inherent business risks and control risks. 619 Risk Based Internal Audits were conducted during the financial year 2024-25.

Information System Audit

Information System Audit collects and evaluates the evidence to determine whether the information system safeguards assets, maintains data integrity and availability, achieves organizational goals effectively and consumes resources efficiently. It focuses on the risks that are relevant to information assets and assesses the adequacy of controls implemented for mitigating the risks. All critical IT infrastructures in the Bank are subjected to Information System Audit by External Audit firms and Internal Auditors of the Bank. Information System Audit is covering various security aspects of IT systems and business continuity procedures is conducted at branches/ offices. During the financial year 2024-25, Information System Audit was conducted in 642 branches/departments (619 branches and 23 Departments).

Management Audit

Management Audit in the Bank essentially focuses on identifying the adequacy and effectiveness of processes adopted for decision making in Regional Offices and various Head Office Departments of the Bank i.e. International Banking Division, Integrated Treasury Department, Information Technology Department , Inspection Department, including IS Audit Cell, Human Resources Development Department, Vigilance Department, Accounts Department, MIS Department, Credit Recovery

& Follow-up Department, Credit Department, Credit Monitoring Department, KYC/AML Cell, Risk Management Department, Secretarial Section, Compliance Department, Planning Development and Resource Mobilization Department, Operations

& Services Department, Customer Service Cell

& Internal Ombudsman Department, Legal Department, Staff Training College, Bancassurance cell, DPS cell, Establishment Department, Service Branch, RTGS/WUMT cell, Central Processing Centre, Disciplinary Action Cell (DAC). The feedback from managementauditisrelieduponbytheauditeeunits to improve the processes, procedures and systems that are in place in such offices. During the financial year 2024-25, Management Audit was conducted in 10 Regional Offices and 25 Departments.

Offsite Audit

Offsite audit is a forward-looking diagnostic tool to identify gaps in the systems and procedures of the Bank. The revenue audit in the Bank is undertaken through Offsite Audit. OTMS (Offsite Transactions Monitoring System) is validating 49 different nature of alerts in the CBS system and generate the respective alerts and communicated to the branches for taking immediate actionable steps.

Concurrent Audit

Our Bank is increasingly relying on ‘Concurrent Audit as an early warning system to ensure near real-time detection of irregularities and lapses and is also used as a tool to prevent frauds. Our Bank has implemented the revised Concurrent Audit framework, duly approved by the Audit Committee of the Board, as per RBI circular dated September 18, 2019, with effect from April 1, 2020. During the year under review, Concurrent Audit was in place in 268 branches and 37 offices, covering 69.045% of total advances and 80.06% of total deposits of our Bank. The offices covered under the Concurrent Audit include all the Regional offices, Central Processing Centre, Chennai Service branch, International Banking Division, Treasury Department, DPS Cell, ATM Cell, Accounts Department, Information Technology Department, Establishment Department, Planning Development & Resources Mobilization Department, and Branches where RBIA risk rating is assessed as "High". Concurrent Audit is also conducted in all the currency chests as required by the Reserve Bank of India. 284 External Auditors / Audit Firms were engaged for concurrent audit assignments during the period.

Credit Audit

In our Bank, verification of account operations, end-use, stock, documents, etc. of big borrowal account limits (above Rs.3 crore) are carried out periodically at post-sanction level and referred as Credit Audit. During the financial year 2024-25, 1154 Credit Audits were conducted.

Outsource Audit

A Comprehensive Risk Based Due Diligence of Partners/Service providers is conducted to ensure that they are financially stable, comply with all regulatory norms, and have all the required information security controls in place to safeguard the interests of all the stakeholders of the Bank. During the financial year 2024-25, 29 outsourced agencies were audited.

The Inspection Department is manned by appropriately qualified personnel and has a staff strength of 43 officers (as on March 31, 2025) with expertise and exposure in all activities of the Bank, such as branch operations, credit sanction, credit monitoring, clearing operations, information technology, risk management and treasury operations.

(h) Key Financial and Operating Ratios:

Operating performance:

		(H in Crore)
Particulars	31.03.2024	31.03.2025
Total Income	5,492.86	6141.75
Total Expenditure	4,011.08	4396.02
Net Interest income	2,150.89	2300.93
Non-Interest income	644.95	850.48
Operating expenses	1,314.06	1405.68
Operating Profit	1,481.78	1745.73
Net profit	1,072.03	1182.61

Key Financial Ratios:

Particulars	31.03.2024	31.03.2025
Cost to Income Ratio	47.00%	44.60%
Yield on Advances	10.15%	10.22%
Book value per share (H)	500.23	568.90
Net worth (H in Crore)	7921	9009

The Banks Net worth has increased by H 1088 crore i.e. 13.74% over the previous year.

Movement of Your Banks share price vis-?-vis NSE and BSE Index for the period from April 2024 to March 2025

This graph shows our banks share price movement in NSE for the period from April 2024 to March 2025.

(i) Material developments in Human Resources / Industrial Relations front, including number of people employed.

Job Analysis and Position Description: The HRD Department conducts a comprehensive job analysis to identify the key competencies and qualifications required for each position. Based on this analysis, they create detailed position descriptions outlining job responsibilities, required skills, and desired experience.

Training Needs Assessment: The HRD Department conducts regular training needs assessments to identify skill gaps and development areas among employees. This involves collecting feedback from managers, conducting performance evaluations, and analyzing organizational objectives to determine the training priorities.

Designing and Implementing Training Programs:

Based on the training needs assessment, the HRD Department designs and implements various training programs. These programs may include technical skills training, leadership development, customer service enhancement, and compliance training. They utilize internal trainers or collaborate with external training agencies to deliver high-quality programs. Employee Development Plans: The HRD Department collaborates closely with managers and staff members to establish personalized development plans that are in line with the organizations objectives and the individuals career ambitions. These plans delineate targeted developmental initiatives, including mentorship, coaching, job rotations, and online courses, all designed to augment employees skills and competencies.

Employee and Industrial Relations:

During the past year, the Industrial Relations climate remained favourable, with due importance given to various representative bodies in order to foster harmonious relations.

Capability Building:

To facilitate individual growth and to contribute to the overall progress of the organization, our Banks Staff Training College is dedicated to creating a continuous learning ecosystem for employees. A diverse range of focused training and learning solutions is offered, including:

(a) Self-learning TMB eSMART Certifications,

(b) Support for capacity - Building certifications,

(c) Talent Pool System - Grooming of Talented employees in an efficient way,

(d) One Hour Learning.

These initiatives provide employees with multiple avenues to continuously enhance their skills, acquire new competencies, and confidently adapt to the evolving demands and challenges of the times.

A Learning Need Analysis survey is conducted to identify gaps in knowledge, skills, and attitudes. A Governing Council, led by the MD & CEO, comprising of Executive Director, Executive Vice President (HRDD), Executive Vice President (PD&RM), Executive Vice President (Recovery), Executive Vice President (Credit) & Executive Vice President (I.T), and faculty, convened twice a year to prioritize training areas for the Bank and review the progress and effectiveness of training interventions. A dedicated feedback mechanism is in place to facilitate this evaluation process.

Digital Training Programs – i. Programmes like Digital Banking - An Era of Digital Revolution training

ii. Programmes in Training on IT Security

iii. Programme in IT & Cyber Security for Senior Management

iv. Digital Transformation, Emerging Technologies and use of Data Analytics in Banking & Finance

v. IBM integrated API management application-M/s.Amstar Technologies.

vi. Advanced AI/ML for Banking-IDRBT

vii. Emerging AI/ML Technologies for Smart Banking-IDRBT

Equity and Diversity –

Executive Development Program for Women Officers of the Banks/FIs, in addition to multiple internal women leadership training.

i. CERT-Ins Cyber security awareness and training Session "Cyber Hygiene for Women Officials" Professional Development Networks – Tie-ups/arrangements with ‘One Hour Learning for Communication upskilling, Confidence building, managerial effectiveness and Soft Skill Development.

Online Training Programs – i. Conference of Treasury Heads - Emerging Trends and Challenges

ii. Cyber Security and Phishing Mail

iii. WebinaronCyberSecurity:Past,Present&Future

iv. RCSA under webinar model as a part of Operational Risk Management for the process of "Cash Handling"

Emerging Leaders Initiative: - i. Programme on Leadership and Development of Soft Skills for Branch Managers & Leadership-IIBF

ii. Leadership and Development of Soft Skills for Branch Managers

iii. Effective Branch Management - Leadership and Administrative Competency

iv. Managing Stress for Effective Performance

v. Neuroscience of Leadership

vi. Advanced Management Programme in Banking and Finance-IIBF

Learning Accelerator e-Smart– Capacity building programme in TMB eSMART

In this programme, all staff members are encouraged to attend training in TMB eSMART followed by an online exam. The online exams are conducted at frequent intervals. E-Certificate is issued to staff members who successfully complete the exam by scoring the necessary pass marks. Reexaminations are also being conducted for staff members who fail in the examination by giving a second chance. The Certified staff members are also given due weightage in Promotion and Transfer. TMB eSMART Certificate is given due weightage in our Staff Annual Appraisal and Promotion Appraisal. Evaluation and Feedback: The HRD Department evaluates the effectiveness of training programs and development initiatives through feedback surveys, post-training assessments, and performance evaluations. This feedback loop helps in continuously improving the training interventions and ensures that employees receive valuable learning experiences.

Communication and Feedback Channels:

The HRD Department establishes effective communication channels to ensure transparent and open communication between employees and management. This includes regular team meetings, suggestion boxes, online platforms, and anonymous feedback mechanisms, enabling employees to express their ideas, concerns, and suggestions.

Employee Surveys and Feedback Mechanisms: To gauge employee satisfaction and engagement levels, the HRD Department conducts regular surveys and feedback mechanisms. These tools provide valuable insights into employee perceptions, job satisfaction, work-life balance, and overall organizational climate. The feedback received helps in identifying areas of improvement and implementing targeted initiatives.

Work-Life Balance Initiatives: Recognizing the importance of work-life balance, the HRD Department implements various initiatives to support employees in achieving harmony in their personal and professional lives. These initiatives may include flexible work, wellness programs, employee assistance programs, and stress management workshops.

Team Building Activities: The HRD Department organizes team-building activities and events to foster a sense of camaraderie, collaboration, and trust among employees. These activities include sports events, social gatherings, and cross-functional projects, enhancing teamwork and employee relationships.

Employee Wellness Programs: To promote employee well-being, the HRD Department implements wellness programs focused on physical, mental, and emotional health. These programs include Yoga sessions, health screenings, mindfulness sessions, and access to counselling services. By prioritizing employee wellness, the HRD Department contributes to a healthier and more productive workforce.

Employee Satisfaction and Retention: Through its various initiatives, the HRD Department plays a significant role in enhancing employee satisfaction and retention. By ensuring fair recruitment processes, providing training and development opportunities and implementing effective performance management systems, the HRD Department creates a positive work environment that fosters employee loyalty and reduces turnover rates. The attrition rate in the bank is at 3.86%.

TMB Foundation (CSR Initiatives)

Building bridges towards an equitable and empowered society

In the financial year 2024-25, the TMB Foundation has continued its commitment to making a meaningful difference in the lives of countless individuals. The CSR fund has been contributed towards following socially relevant causes, the foundation has reaffirmed its focus on creating a sustainable impact in rural Tamil Nadu

Education and Skill Development

Education remains a cornerstone of the following efforts. Recognizing the transformative power of education, the TMB Foundation has invested in initiatives that aim to provide sustainable learning opportunities for children and young adults in rural communities. Through modern facilities, amenities, quality resources, and more importantly, the skill development programs initiated in Madurai, the foundation envisions brighter futures for the rural youth, equipping them to overcome barriers and achieve their aspirations

Sports

There are numerous untapped sporting talents with immense potential, yet many are unable to achieve their dreams due to financial and resource constraints. The TMB Foundation stands as a beacon of hope, identifying such gifted individuals and providing the essential support to turn their aspirations into reality.

One shining example is Anton, a remarkable athlete who competed in the prestigious Para Olympic Games held in Dubai. With unwavering determination and the foundations backing, Anton has now qualified to represent in the National Olympic—a testament to his hard work and the support he received.

Healthcare

The Foundations dedication extends to health care as well. Offering essential medical support to underserved populations it has brought much-needed relief to individuals who otherwise struggle to access quality healthcare services.

Safe Drinking Water

Additionally, the Foundation has addressed a fundamental necessity for life, clean drinking water. Projects have been undertaken to ensure that even the most remote communities have access to safe and clean water, thereby improving their overall quality of life and health.

Environment

At the TMB Foundation, environmental conservation stands as one of our core objectives. In our commitment to protecting rivers and waterways, we actively collaborate with NGOs and government initiatives.

Our efforts in Thoothukudi focused on preventing floods by clearing and maintaining waterways, ensuring the safety and well-being of the community. Additionally, we have undertaken measures to clean the Thambirabarani river and safeguard the regions flora and fauna. These initiativesrepresentourdedicationtosustainabilityandthe preservation of our environment for generations to come.

The TMB Foundations unwavering commitment to these key areas underscores its mission of fostering inclusive development and uplifting underprivileged communities. Through these endeavours, TMB continues to not only uphold its values but also solidify its role as a socially responsible institution that truly cares for the well-being of society.